By 2026, the real estate market on Metaverse will surpass the value of $5 billion. A global market research company, Technavio, has made these predictions about the real estate sector.
People will be able to benefit from the virtual spaces in the Metaverse, which will further give rise to an influx of billions of dollars into the mixed-reality environment.
Exponential Growth in the Real Estate Market of Metaverse
As the Metaverse is constantly evolving into a more tangible, living and breathing world, more people want to become a part of its ecosystem. This popularity of Metaverse among people is going to affect the real estate world.
The report released by Technavio stated that the real estate sector would grow by 5.36 billion dollars for two main reasons. One is that Metaverse is moving towards providing a virtual reality (VR) experience to its users; this will trigger more interest among the customers to inhabit the VR space, offering decoding tags and annotations for application-specific activities.
The second reason for the sudden popularity gain in Metaverse’s Real Estate aspect is driven by cryptocurrencies. The properties owned by people in the virtual world will be more approachable due to the introduction of cryptocurrency, allowing the owners to rent or sell these virtual lands—imparting a passive source of earning.
Challenges experienced in the virtual world include
Not everything will be rainbows and unicorns in the Metaverse’s real estate market. The sector is still unstable and is struggling to find its destination amongst the users. The problem is primarily arising as the virtual world’s real estate business will be very different from the real world.
The lands owned in the virtual world will differ, and the cost will also vary from one case to the next.